Freescale net sales decrease in Q3

Net sales for the third quarter of 2007 were $1.45 billion, compared to $1.62 billion in the third quarter of 2006.

"Third quarter financial results improved sequentially and we generated strong cash flow," said Michel Mayer, chairman and CEO. "The sequential improvement was due primarily to higher wireless revenues."
Operating earnings, net earnings and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) include non-cash purchase accounting expenses related to the company’s acquisition by a private equity consortium in December 2006.
The company believes that providing operating earnings and EBITDA exclusive of these expenses is a more meaningful representation of the company’s ongoing financial performance. Including the aforementioned expenses, the operating and net losses for the third quarter of 2007 were $202 million and $261 million, respectively.
Excluding the aforementioned expenses, operating earnings were $195 million and EBITDA was $353 million. This compares to operating earnings of $270 million and EBITDA of $435 million in the third quarter of 2006.
The company also uses Adjusted EBITDA to measure compliance with certain of its debt covenants. Adjusted EBITDA for the third quarter of 2007 was $396 million. Adjusted EBITDA for the 12 months ended September 28, 2007 was $1.57 billion.
The Transportation and Standard Products segment reported net sales of $653 million in the third quarter of 2007, compared to $682 million in the third quarter of 2006. EBITDA for the third quarter was $177 million, or 27% of net sales.
The Networking and Computing Systems segment reported net sales of $315 million in the third quarter of 2007, compared to $369 million in the third quarter of 2006. EBITDA for the third quarter was $103 million, or
33% of net sales.
The Wireless and Mobile Solutions segment reported net sales of $468 million in the third quarter of 2007, compared to $540 million in the third quarter of 2006. EBITDA for the third quarter was $71 million, or
15% of net sales.
Cash, cash equivalents and short-term investments were $772 million on September 28, 2007, compared to $541 million at the second quarter ending June 29, 2007. Capital expenditures were $73 million or 5% of net
sales for the third quarter of 2007.